LG Electronics stock down 18% since listing: Hold or sell?
What's the story
LG Electronics India's shares fell by over 4% on January 8, following the end of a three-month shareholder lock-in period. The company's stock price hit ₹1,393.20 per share—the lowest since its debut in December last year. According to CNBC-TV18, Nuvama Alternative and Quantitative Research estimates that around 1.52 crore shares or about 2% of the company's equity have become eligible for trading post-lock-in expiration.
Stock journey
Market debut and current performance
LG Electronics India made a stellar market debut on December 10, listing at ₹1,710.10 per share on NSE, a 50% premium over the IPO price of ₹1,140 per share. The company's ₹11,607 crore IPO was oversubscribed more than 54 times. However, despite this strong start and the recent lock-in period expiration, LG's stock is currently trading about 18% lower than its listing price.
Market outlook
Analyst insights on LG Electronics India's future
Despite the recent dip in share price, analysts remain optimistic about LG Electronics India's long-term prospects. Nitant Darekar, a research analyst at Bonanza, highlighted the company's strong market position in washing machines and refrigerators. He also noted a ₹5,000 crore investment over four to five years as a sign of confidence in capacity expansion and export optionality under the Global South strategy.
Financials
LG Electronics India's financial performance and future strategies
In Q2 FY26, LG Electronics India witnessed a 27% YoY drop in net profit despite a 1% rise in revenue. The company's EBITDA margins also fell to 8.9% from 12.4%, due to GST transition disruptions, commodity inflation, and promotional investments. However, management expects recovery through localization (aiming for 70% from current 55.8%), premiumization, AMC recurring revenue streams, and B2B expansion initiatives.